Article 4 Compensation: When Can You Claim?

Article 4 compensation is available in limited circumstances when an Article 4 Direction removes a permitted development right and a later planning decision causes qualifying loss. The Direction itself does not automatically create a cheque from the council.

The key rules are in section 107 and section 108 of the Town and Country Planning Act 1990. For many Article 4 cases, timing is critical.

When can Article 4 compensation arise?

Section 108 applies where planning permission granted by a development order has been withdrawn and the local planning authority then deals with an application for the development which previously benefited from that permission.

For a typical Article 4 claim, the important points are:

• The Article 4 Direction must have removed a relevant permitted development right
• The development must fall within the statutory compensation regime
• Where section 108(2A) applies, the planning application must be made within 12 months beginning with the date the withdrawal took effect
• The planning application must then be refused, or granted subject to conditions different from those which applied under the withdrawn permitted development right
• The claimant must prove a compensatable loss under section 107

A council can usually avoid this particular Article 4 compensation exposure for prescribed development by giving at least 12 months’ notice and following the statutory procedure. That is why the effective date and the notice history matter as much as the words “immediate” or “non-immediate”.

Do you have to appeal the refusal before claiming compensation?

No statutory rule requires you to make a section 78 planning appeal before you can serve a valid compensation claim. This reading is consistent with R (Milton Keynes Council and others) v Secretary of State for Communities and Local Government [2011] EWCA Civ 1575. The Court of Appeal described the section 108 scheme by reference to qualifying planning applications which are subsequently refused or granted subject to conditions. The case did not decide whether an appeal must be exhausted, so it supports the statutory trigger rather than acting as direct authority on the appeal point. Section 108 applies where the withdrawn permitted development right is followed by a planning application which is refused or granted subject to different conditions. Section 109(6) then defines the relevant planning decision as the planning decision by which permission is refused, or granted subject to conditions other than those previously imposed by the development order. Neither sections 107 to 109 nor the statutory claim procedure says that the claimant must first exhaust the planning appeal route.

A planning appeal is a separate route. It may still be very important. If an appeal is allowed, the loss claimed may reduce substantially or disappear. If a claimant chooses not to pursue a realistic appeal, the council may also argue about mitigation, causation or the amount of loss. Those are different questions from whether the compensation claim was validly made.

If a council says that an appeal is a legal precondition to making the claim, ask it to identify the statutory provision on which it relies. We have not found such a requirement in the legislation or current government guidance reviewed for this page.

There is another practical reason not to assume that an appeal must come first. The compensation claim has its own statutory time limit. Do not assume that a planning appeal stops or extends that clock.

Who can make a claim?

Section 107 refers to a person interested in the land who has incurred qualifying expenditure or sustained qualifying loss or damage. In practice this may include an owner or a leaseholder with a relevant interest, but entitlement depends on the particular interest and loss rather than the label attached to the claimant.

Buying after an Article 4 Direction has taken effect is not written into section 108 as an automatic bar to every claim. However, the purchase date, the price paid, knowledge of the restriction and the nature of the claimant’s loss may all be important when causation and valuation are considered.

What can compensation cover?

Section 107 provides two broad heads of compensation. The first is qualifying expenditure which has become abortive. The second is other loss or damage directly attributable to the withdrawal of the planning permission.

Depending on the facts and the valuation evidence, a claim may therefore include:

• Professional and preparation costs which have genuinely become abortive because the permitted development right was withdrawn
• The cost of plans and other project work where the statutory test is met
• Loss in the value of the relevant interest in land, where that loss can be proved and is directly attributable to the withdrawal
• Other directly attributable loss which can be evidenced and is not too remote or duplicated elsewhere in the claim

This does not mean every invoice, lost rent figure or extra cost imposed by a planning condition is automatically recoverable. The claimant still has to prove the statutory connection between the Article 4 withdrawal, the planning decision and the loss. A Chartered Surveyor with appropriate valuation experience may be needed where diminution in value forms part of the claim.

How to claim Article 4 compensation

1. Check the Direction. Identify the exact Article 4 Direction, the permitted development right withdrawn, the area affected and the date the withdrawal took effect
2. Check the notice period. Establish whether the statutory 12-month notice provisions exclude compensation for the development concerned
3. Protect the application deadline. Where section 108(2A) applies, make the qualifying planning application within 12 months beginning with the date the withdrawal took effect
4. Submit the planning application. The application will normally attract the relevant planning application fee. See our planning application fees page
5. Obtain the decision. The claim route arises where permission is refused or granted subject to different conditions within section 108
6. Serve the compensation claim. Regulation 12 requires the written claim to be served within 12 months from the date of the relevant decision, unless the Secretary of State allows a longer period in the particular case

The statutory service rule is important. Regulation 12 of the Town and Country Planning General Regulations 1992 provides for service by delivering the written claim at the authority’s offices or by sending it by pre-paid post. If you also send the claim electronically, do not rely on email alone as a substitute for the statutory method without appropriate advice.

What should go in the written claim?

There is no special Article 4 compensation form prescribed by regulation 12. A sensible claim pack should make the legal and factual basis clear and provide the evidence needed to value it. It should normally include:

• The claimant’s full name and contact details
• The address and description of the land
• The claimant’s interest in the land
• A copy of the Article 4 Direction and its operative date
• The permitted development right which was withdrawn
• The planning application reference, decision and decision date
• The statutory basis of the claim under sections 107 and 108
• A schedule setting out each head of loss and the amount claimed
• Invoices, engagement letters, reports and proof of payment for abortive expenditure
• Valuation evidence where diminution in value or another valuation issue is claimed
• An explanation of steps taken to mitigate the loss
• Details of any section 78 appeal which has been made or is proposed
• Evidence showing when and how the compensation claim was served

Keep the evidence tied to the loss actually claimed. Ordinary repair or improvement expenditure which still benefits the property is not automatically transformed into Article 4 compensation simply because it was incurred around the same time.

What if a planning appeal is already running?

You can protect both routes. A section 78 appeal deals with whether planning permission should be granted. The compensation claim deals with qualifying loss caused by the withdrawal and the relevant planning decision.

Do not allow the 12-month compensation claim period to expire merely because the planning appeal has not finished. Where both processes are live, the compensation claim can explain that an appeal is pending and that the final amount may need to be revisited when the appeal outcome is known.

What if the council disputes the claim?

The first stage will normally be discussion and negotiation with the local planning authority, often supported by valuation evidence. If the entitlement or amount remains disputed, section 118 of the Town and Country Planning Act 1990 provides for disputed compensation under Part IV to be referred to the Upper Tribunal.

This is a land compensation reference, not the same thing as a planning appeal. The current Upper Tribunal procedure uses Form T371, Notice of Reference. You do not need the council to issue you with a “notice of reference” before you can start the tribunal process.

Tribunal proceedings carry costs and procedural risk. The current form, fee and procedural guidance should always be checked before making a reference.

Which permitted development rights qualify for Article 4 compensation?

The compensation rules do not simply cover every permitted development right that an Article 4 Direction can withdraw. The relevant prescribed development is set by the Town and Country Planning (Compensation) (England) Regulations 2015, as amended.

Because the list of prescribed classes can change when the GPDO is amended, we do not repeat a long static list here. Check the current regulations and the particular Direction. For HMO restrictions, our Article 4 Map for HMOs tracks current and forthcoming directions. We also maintain a separate Article 4 Map for Class MA.

Key legislation and guidance

• Town and Country Planning Act 1990, section 107
• Town and Country Planning Act 1990, section 108
• Town and Country Planning Act 1990, section 109
• Town and Country Planning Act 1990, section 118
• Town and Country Planning General Regulations 1992, regulation 12
• Town and Country Planning (Compensation) (England) Regulations 2015
• Government planning practice guidance on when permission is required
• Upper Tribunal Lands Chamber land compensation guidance

Planning and valuation advice

Article 4 compensation sits across planning law and valuation. Planning Geek can help with the planning application, the Article 4 history and the planning evidence needed to frame the claim. A substantial valuation claim may also need a suitably experienced Chartered Surveyor, and a disputed or complex legal claim may require a planning solicitor.

This page is general guidance rather than advice on the value or merits of a particular compensation claim.

More Article 4 resources

Article 4 directions can affect different permitted development rights and different areas. Use the index for the complete section, or go straight to the topic you need.

Article 4 Compensation Page Created: 25th May 2025

Article 4 Compensation Page Updated: 15th September 2026